UAE free zones China boost

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UAE free zones China boost

Photo by Octal.

The United Arab Emirates further cemented its credentials as a money-making destination for businesses across the world when a leading global land drilling rig manufacturer announced the official opening of its sales and maintenance service centre in Dubai’s Jebel Ali Free Trade Zone.

The China-based Honghua Group’s new service centre, which has been in operation since October last year, will provide sales, maintenance, refurbishment, spare parts supply and storage, equipment rental and after-sales service in the Middle East, Africa and Europe. In addition, the new service centre will be able to assemble 10 drilling rigs annually.
Mr Zhang Mi, CEO and chairman of the board of directors, Honghua Group, said, “Honghua Group’s strength is in its ability to offer the highest level of service and rig maintenance to its customers around the world including the Middle East, and that’s why our customers consider us a trusted local partner.

“By continually demonstrating service excellence and innovation, we hope to capitalize on the vast opportunities that the Middle East has to offer.”

Honghua Golden Coast Equipment Co., Ltd., a wholly-owned subsidiary of Honghua Group will be responsible for the operation and management of the new service centre. Nearly 40% of the employees are local nationals.
Since establishing a presence in the Middle East in 2006, the Honghua Group has collaborated with leading drilling companies in the region, and sold 47 sets of various drilling rigs so far. In a high growth region, the Honghua Group today boasts a solid brand reputation in the United Arab Emirates, Kuwait, Yemen, Jordan, Saudi Arabia and other oil producing nations.

In 2012, Honghua Group was awarded a $300 million contract by National Drilling Company (NDC), one of the largest drilling contractors in the Middle East, to provide seven 9,000-meter 3,000 horsepower cluster land drilling rig units, which will be used mainly in the operation of oilfields in the Middle East.

The Honghua Group has developed many drilling rigs catering to the unique geographical characteristics of the Middle East. These drilling rigs are able to withstand the Gobi Desert’s high temperatures and winds; can operate at a depth of less than 122 meters (400 feet) in the Persian Gulf; and possess a hydraulic super single rig that requires only 3-4 people to operate, thus, saving time and drilling costs.

Setting up a business in one of the UAE’s many free zones is enticing for major multinational companies for a number of reasons. Location is one given the country is poised between emerging markets both to the east and west. It’s also a fast and relatively straightforward process, taking days, not weeks or months. But there are other benefits, too, including 100% foreign ownership; 100% repatriation of capital and profits; no foreign exchange controls; purpose-built infrastructure options and much more. There is also little in the way of labour restrictions.

A strong financial sector has always played its part in the UAE free zone success story, too. Many of the world’s greatest multinational banks are strongly represented within the country. HSBC, Barclays, Citibank and others are not only renowned for their financial expertise, but they are also rightly recognised for the depth of the international banking services they offer the business community.